DETERMINANTS OF COMMERCIAL BANKS PROFITABILITY: EVIDENCE FROM GERMANY | Zendy

Szilard Farkasdi | Zendy; Budi Septiawan. | Zendy; Erik Syawal Alghifari | Zendy

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DETERMINANTS OF COMMERCIAL BANKS PROFITABILITY: EVIDENCE FROM GERMANY

Author(s) -

Szilard Farkasdi,

Budi Septiawan.,

Erik Syawal Alghifari

Publication year - 2021

Publication title -

jrak

Language(s) - English

Resource type - Journals

eISSN - 2597-6826

pISSN - 2088-5091

DOI - 10.23969/jrak.v13i2.4500

Subject(s) - profitability index , asset (computer security) , net interest income , sample (material) , business , capital adequacy ratio , population , capital (architecture) , interest rate , monetary economics , economics , financial system , finance , demography , geography , profit (economics) , chemistry , computer security , archaeology , chromatography , sociology , computer science , microeconomics

This study aims to determine the determinants of profitability in commercial banks in Germany. The population is 7 banking sector companies listed in the DAX (Deutscher Aktienindex) Bank during the 2017-2020 period, with a sample of 5 banks and producing 20 observational data. The method used is descriptive and verification with multiple regression analysis. The results show that asset size, capital adequacy, deposits and non-interest income have a significant positive effect on profitability. Partially, asset size, capital adequacy and non-interest income have a significant positive effect, while the deposit has a significant negative effect on profitability. The most dominant factor affecting profitability is non-interest income.

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